Additional purchases of U.S. liquefied natural gas (LNG) by the European Union could help ease tight global gas markets and lower energy costs for German consumers and industries, according to Michael Lewis, CEO of Uniper, a major German energy company. He made these comments in an interview with Reuters on Wednesday.
Earlier this week, U.S. President Donald Trump once again urged the EU to increase its imports of American oil and gas to avoid potential tariffs.
“When Trump sends more gas to Europe, it will reduce global gas prices,” Lewis told Reuters. He added that lower gas prices would benefit German households and industries, making the situation “positive.”
Germany has been importing U.S. LNG to its newly constructed floating terminals since the halt of Russian pipeline gas deliveries.
This month, at least six LNG shipments originally heading to Asia have been redirected to Europe. European natural gas prices have recently surged, while Asian prices have decreased due to weak demand and high inventories.
Despite rising spot LNG prices in Asia during the winter months, they have not reached a high enough level to make it more profitable to sell U.S. gas to Asia instead of Europe, according to shipping data and analysts.
Meanwhile, President Trump urged the EU to increase its purchases of U.S. oil and LNG to avoid tariffs. “The one thing they can do quickly is buy our oil and gas,” Trump said on Monday, as reported by Bloomberg. “We will straighten that out with tariffs, or they have to buy our oil and gas.”
This is the second time Trump has called on Europe to buy more U.S. energy, following a similar statement in December, when he warned of “TARIFFS all the way!!!”
On his first day in office, Trump lifted a pause on new LNG export terminal construction, a move previously imposed by the Biden administration after a study suggested that LNG exports might have a higher carbon footprint than coal.
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